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NICE Ltd ADR NICE

Morningstar Rating
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Stock XNAS Rating as of
$194.42 +0.10 (0.05%)
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As of Delayed Price Post-Trading: $194.45 +0.03
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Company Report

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Nice Earnings: Shares Up 9% on Cloud Growth and Optimism Over AI; Still Undervalued

Rob Hales

We’re maintaining our $265 fair value estimate for narrow-moat Nice after incorporating third-quarter results and the LiveVox acquisition. Shares jumped 9% on peer-leading cloud growth of 22% and good indications that Nice’s artificial intelligence offerings are gaining traction with customers. Furthermore, 2023 guidance was raised modestly and an initial outlook for 2024 was provided, which likely soothed investor concerns given recent uncertainty over AI and a weaker market for small and mid-size customers. Despite the positive price reaction, we continue to think the shares look undervalued.

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Price vs Fair Value

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NICE is trading at a 27% discount.
Price
$194.43
Fair Value
$288.00
Uncertainty
Medium
1-Star Price
$539.86
5-Star Price
$712.70
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Nice has strong user retention metrics, with net dollar retention around 110%-120%.

Bears

Nice is undergoing a cloud transition, and the timing of legacy customer migration and degree of success on this front remains to be seen.

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News

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Trading Information

Previous Close Price
$194.32
Day Range
$192.78–196.27
52-Week Range
$149.54–231.54
Bid/Ask
$190.41 / $198.37
Market Cap
$12.31 Bil
Volume/Avg
462,338 / 549,053

Key Statistics

Price/Earnings (Normalized)
21.78
Price/Sales
5.56
Dividend Yield
—
Dividend Yield (Forward)
—
Total Yield
2.00%

Company Profile

Nice is an enterprise software company that serves the customer engagement and financial crime and compliance markets. The company provides data analytics-based solutions through both a cloud platform and on-premises infrastructure. Within customer engagement, Nice’s CXone platform delivers solutions focused on contact center software and workforce engagement management, or WEM. Contact center offerings include solutions for digital self-service, customer journey and experience optimization, and compliance. WEM products optimize call center efficiency, leveraging data and AI analytics for call volume forecasting and agent scheduling. Within financial crime and compliance, Nice offers risk and investigation management, fraud prevention, anti-money laundering, and compliance solutions.
Sector
Technology
Industry
Software - Application
Stock Style Box
Mid Growth
Total Number of Employees
7,926
Website
https://www.nice.com

Competitors

Valuation

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Metric
NICE
TWLO
RNG
Price/Earnings (Normalized)
 21.7835.979.78
Price/Book Value
 3.831.19—
Price/Sales
 5.562.921.28
Price/Cash Flow
 20.4022.414.77
Price/Earnings
NICE
TWLO
RNG

Financial Strength

Metric
NICE
TWLO
RNG
Quick Ratio
 2.156.081.29
Current Ratio
 2.456.531.74
Interest Coverage
 ——−18.03
Quick Ratio
NICE
TWLO
RNG

Profitability

Metric
NICE
TWLO
RNG
Return on Assets (Normalized)
 11.59%−1.20%13.58%
Return on Equity (Normalized)
 18.19%−1.44%—
Return on Invested Capital (Normalized)
 13.73%−1.28%21.34%
Return on Assets
NICE
TWLO
RNG

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